CBS, seeking growth, will bring back ‘The Twilight Zone’ for its digital service
CBS Corp. is bringing back another quirky classic — “The Twilight Zone” — for its CBS All Access streaming service, after the company’s successful launch this fall of “Star Trek: Discovery.”
CBS Chief Executive Leslie Moonves announced a reboot of the Rod Sterling program Thursday during the company’s third-quarter earnings call with analysts. His message was that CBS was mixing old with new — in this case, new versions of old gems to encourage subscribers to sign up for the company’s stand-alone $5.99-a-month streaming service.
“Yes, we are in a time of great change across our industry and, at CBS we have been anticipating these changes for years,” Moonves told analysts.
The company has been adding original programming to its streaming service, which includes live feeds of local CBS stations, as a hedge as more people cancel their pay-TV bundles in favor of digital options. CBS does not expect the streaming service to replace the linear TV network, but the service reaches a younger audience and it gives CBS an additional platform for its programming.
The New York broadcast giant failed to deliver a knock-out punch in its July-through-September earnings. Revenue was up 3% to $3.17 billion. Subscription fees were significantly higher in the quarter because of interest in the Floyd Mayweather-Conor McGregor pay-per-view fight, which was distributed by CBS’ Showtime premium channel.
Net income from continuing operations declined 10% to $418 million, or $1.03 per share, compared with $466 million, or $1.04 per share, in the year-earlier period.
CBS earned an adjusted $1.11 a share, topping analysts’ estimates of $1.08 a share.
Advertising revenue was down 5%, reflecting an industrywide trend that has been worrisome to Wall Street. Prime-time ratings have been down. CBS also faced a tough comparison because TV stations a year earlier raked in political dollars as candidates and interest groups sought to influence the November 2016 elections.
Analysts also have been concerned about a decline in NFL ratings because football has long been a ratings engine for the TV networks, including CBS, that carry it.
“The ratings are down a bit this year; obviously, there were political issues that came up with the kneeling during the national anthem,” Moonves said. He added that there also is an abundance of football available for fans — which might be contributing to the lower ratings. “There’s a lot of product out there…. But it is still a great product.”
In addition to Sunday afternoon NFL games, CBS airs Thursday night games, and CBS must decide whether the benefits are worth the cost as that big-ticket deal nears an end.
CBS also expects to complete the spinoff of its radio division to Entercom Communications Corp. this month.
CBS shares closed Thursday at $54.46, down 3%, or $1.73.
UPDATES:
3:10 p.m.: This article was updated with CBS’ closing stock price.
This article was originally published at 3:05 p.m.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
